The Mediterranean Shipping Company (MSC) has now announced that it will make full utilization of the blockchain technologies to improve operating performance by using the electronic lading bill (eBL). The electronic lading bill is all set to come into operation in the form of WAVE BL, a blockchain-based digital courier platform.
This innovation, according to reports, will enable all MSC clients to use WAVE BL by following initial small-scale implementation. In a collaborative effort, the partners have built an easy-to-use interface to ensure that shippers do not need to change the methods that they conventionally used on papers.
In the recent past, the use of blockchain in the maritime industry and ports has been a fruitful discussion. There is positive work being done in the maritime sector, and the next step is to find out how we can effectively help the industry achieve optimum productivity by coordination and support on the blockchain.
Despite various technological advances, the shipping industry remains a traditionally focused industry. Current transportation demands a vast variety of paper documents, such as contracts, bills of lading, port authority records, and other shipping and cargo-related documents. Many of the technical aspects of the database systems used by shipping firms are now obsolete, and the majority of shipping companies use costly and time-consuming transportation to deliver their valuable documents.
Blockchain infrastructure can be used for container surveillance and end-to-end delivery, vessel intelligence, and the use of intelligent contracts and maritime insurance.
This results in the automation and digitization of the paper collection, lowering the cost of container clearing and movement. Blockchain technology is opening the way for new opportunities in all markets, including the maritime sector.
Implementations have also been carried out on experimental and project stages like the smart contract bill of lading known as CargoX. CargoX’s Platform for Blockchain Document Transfer (BDT) has been implemented in Indian Port Community System to digitize maritime business papers, including lading bills.
We are in an era of digitalization. The new drivers of the future world are digital information, electronically coded contracts, and new technical infrastructure. These factors will invariably innovate and transform the shipping industry. Many commercial contracts around the world can evolve into computer-coded smart contracts. The use of blockchain technologies is particularly advantageous in the digitization of “smart shipping.”
Environmental protection also has a beneficial effect that may perhaps be derived from the use of blockchain technologies. On cutting down on emissions by courier transportation of valuable documents, the maritime sector can progress further in their aim to reduce carbon emission.
The supply chain is nearly a perfect example of blockchain usage, especially amongst popular shipping companies. Human error is inevitable and potential manipulations are difficult to rule out. This is known to many companies and they are already in pursuit of taking a newer approach to the transformation of the maritime sector.
Blockchain technology provides the shipping sector with a modern and secure framework. It is safe to say that the future of the maritime and transport industries will be linked to blockchain-based technologies, as it includes various requirements to facilitate swift, secure, open, cost-effective, and efficient transport.
"WAVE BL is favored by MSC because it is the only alternative that reflects the conventional paper method used in the transport shipping sectors," says Andre Simha, Global Chief Digital & Information Officer at MSC.
He also mentioned that it offers a much easier and more reliable electronic alternative to all available options for conventional print papers.
In fact, it can be assured that only legitimate recipients can collect P2P bills as a digital alternative to paper-based bills.
For those that are not yet inaugurated, MSC is part of the recent Digital Container Shipping Association (DCSA), which has continually established specifications for the electronic bill of lading (eBL) in open source.
The study shows that it will save more than $4 trillion a year if 50% of the sector adopts eBLs by 2030.